Verizon reaches $130B deal for Vodafone wireless stake

Verizon Communications has reached an agreement to acquire Vodafone Group’s 45 percent stake in their U.S. wireless venture for about $130 billion, according to a person with knowledge of the discussions.

Verizon’s board hasn’t approved the terms of the deal, said the person, who asked not to be named because the negotiations haven’t been made public yet.

A deal could be announced as soon as Monday, people with knowledge of the matter have said.

For Verizon, full control of the largest U.S. wireless carrier will mean access to $21.8 billion in operating income to boost its network as it faces aggressive competition from Sprint.

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Japan’s Softbank bought Sprint this year and founder Masayoshi Son has pledged to make the third-biggest U.S. wireless carrier a stronger rival.

Britian’s Vodafone confirmed it’s in advanced talks to sell the stake, with no certainty an agreement will be reached.

Bob Varettoni, a Verizon spokesman, declined to comment.

The deal will be structured almost equally between cash and shares, according to two people with knowledge of the deal.

For Verizon, the decision to commit to one of the biggest deals of all time reflects its confidence in the U.S. wireless market even as growth slows and competition intensifies.